This post from Terry Heaton is an excellent refresher to a concept put forth by Clayton Christensen in his book, The Innovator’s Dilemma. The book is very interesting and I highly recommend it. The basic premise is that old established companies are incapable of starting new businesses in disruptive and new areas. Culture and preservation of cashflow are two of the main reasons.
We all know that for many years weather was one of the top reasons people came to the local newscasts. Interestingly I have rarely seen much successful direct monetization of the TV weather product. It would seem that weather was almost a promotional activity that brought viewers to the product and the better your weather product, it was assumed, the better your ratings.
During this time of change, when people already know the forecast before the 6:00 news, why would any local television company do anything to develop systems to offer that data someplace other than the TV news?
We brought them to the local newscast. Should we now send them away?
Should a local newspaper have invented Craigslist, and killed up to 45% of their revenue? Should Blockbuster have become Netflix and eliminated all of those stores?
What a dilemma.